House-buying thread - Why is everyone involved in this process so deeply stupid?

The Something Awful Forums > Discussion > Ask/Tell > Business, Finance, and Careers > House-buying thread - Why is everyone involved in this process so deeply stupid?

roadhead: Dec 25, 2001

Just came in here to vent.

The wife and I have saved up 20% of the purchase price of a home, and are working with a couple of different lenders on getting a pre-approval letter so we can begin house-hunting in earnest.

My wife's salary ALONE is enough that 40% of her AGI would cover the note on the house, plus property taxes and home-owners insurance.

All the lender's must be busy as gently caress, because it takes DAYS to hear back from these people, and then you might only get "sorry this is taking so long, will have an answer in a few minutes" after which you don't hear from them for DAYS.

Is the market really so bad that a DINK couple with 20% to put down is having trouble getting a loan?!?! This is also in a medium sized Texas town, that never really had a real-estate bubble to burst...

*sigh*

# ¿ Jun 12, 2009 19:46

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# ¿ Apr 30, 2024 11:54

roadhead: Dec 25, 2001

Wreckus posted:

^ That's odd, it may just be your lender. I was approved in about 5 minutes on an FHA loan.

Right now working with two completely different ones. One is our bank where my wife has had an account for like 10 years. The other was a lead I got from lendingtree.com

So I am correct in believing the people we are dealing with are either 1)overworked 2) stalling or 3) retarded ?

Do you mind sharing the contact info of your lender?

(Also could do FHA as we're first timers)

# ¿ Jun 12, 2009 22:19

roadhead: Dec 25, 2001

Strict 9 posted:

It's not that it won't make or break the house purchase. We have $60,000 saved for our downpayment. What is limiting our house purchase is not the monthly mortage/tax/insurance payments, but the 20% down payment. I just do not want to pay PMI.

The $8000 would put us over 20% on several of the houses we're looking at, and that's why I want it so bad for the down payment.

Nearing $70,000 for 20% ? I'm glad I don't have to buy where you live, couldn't afford it!

# ¿ Jun 18, 2009 15:53

roadhead: Dec 25, 2001

Well after applying to a few more lenders, I finally found one that actually RETURNS PHONE CALLS.

Anyway, got the pre-approval out of the way, now we're on to actual house picking out stuff.

And it took less than 24 hours from initial contact to "approved" - where we'd been working with others for WEEKS.

# ¿ Jun 19, 2009 19:02

roadhead: Dec 25, 2001

Got the results of the inspection on a house I was previously very excited about. How bad does some of this stuff sound? To me personally I now fear the whole place will fall apart moments after we close.

quote:

1) Area(s) of rafter(s) are, split and/or broken. one rafter over garage area

2) "Siding sections and/or wood trim observed in direct contact with
soil. This can lead decay due to water "wicking" from the soil into
the wood. This condition is also very conducive to insect entry.
Moisture related deterioration was noted in the following area(s).back
right wood rot noted. Note bottom section and there was a gap where
small animals could get in on back inside corner.

3) "No main service disconnect present. Two or more circuits which are
improperly connected to a single pole breaker. Some/all of the
conductor size is too small for the breaker/fuse supplying it. Wire(s)
rub unprotected metal edges. The main distribution panel does not
contain enough circuits to properly serve the home. A larger panel or
an auxiliary would be desirable. Knockout(s) are missing.

4) Several problems with outlets/grounding/GFIs

5) Corrosion/deterioration was present on area(s) of the supply
piping. No anti-siphon protection observed on exterior hose
bibs/faucets.

6) Leakage/drip is noted in area(s) of the supply piping on back side
tub in closet.

7) Water Heater: No combustion and/or draft air intake(s) was present.

8) Oven/Range: Anti-tip mechanism was not present.

9) Garage Door sticks!

I'm still in the option period of my contract, so if I back out now I don't lose much ($75) - but I like the location of the house and the condition of the superficial things on the interior (floors, walls, etc.)

How much leverage did I just gain with this new knowledge?

# ¿ Jul 22, 2009 18:17

roadhead: Dec 25, 2001

SlapActionJackson posted:

7. May not need addressing depending on where the heater is located

Its in the middle of the drat house! In a closet. I assume this has something to do with venting Carbon Monoxide and it collecting in the living area, or possibly the natural gas itself! I assume this would be bad?

# ¿ Jul 23, 2009 12:41

roadhead: Dec 25, 2001

SlapActionJackson posted:

The report says you're missing an intake, not an exhaust vent. That means the air that gets burned comes from inside the house. This creates a partial vacuum inside the house, so if you've got other gas-burning appliances going, this could interfere with the proper exhaust of their combustion gasses. It's a bigger deal the more air-tight your house is and the harder it is for it to leak in the air being consumed by the heater.

Wow Reading Comphension-- on my part. Today I met with the Realtor and we took the easy way out - attach the inspection report to the contract with an amendment citing it, demanding everything marked "Deficient" be brought up to code.

The reason we were considering this particular property is that it seemed to be in "move-in" condition. With the electrical system in the condition is was in I would not be able to occupy the property

# ¿ Jul 23, 2009 21:57

roadhead: Dec 25, 2001

Our deal seems to be zipping along smoothly, just got off the phone with lender and he claims we're all set to sign on Friday.

Is this when I'm supposed to get REALLY REALLY nervous? Because I am

# ¿ Aug 17, 2009 16:40

roadhead: Dec 25, 2001

DancingMachine posted:

Now is a good time to buy because housing prices are more or less back in line with long-term historical trends, and interest rates are extremely low. It's not so much that the prices are depressed, I agree the prices are merely corrected, not depressed. I shouldn't have used the term "bounce back" but I do think we will see prices return to a slow march of appreciating 1-3% percent every year some time in the next couple years (though we might lose another 10% or so before that starts). It's interest rates that are the key factor here. They are going to go up pretty soon (a month? 6 months? 2 years? certainly not longer.) and they will almost certainly never return to these levels once they do.

I figure my current house is sunk cost and shouldn't really influence my decision to buy into a new neighborhood.

1-3% a year isn't making money though, its merely preserving it from erosion at a "typical" rate of inflation. It's just treading water, really.

# ¿ Feb 23, 2011 15:07

roadhead: Dec 25, 2001

eddiewalker posted:

Can we get a name for the first monthly payment where the "principle paid" exceeds the "interest paid" on my monthly statement?

I'd like to get it printed on a cake to celebrate.

You're half-way there, so 'Hump Check'?

# ¿ May 5, 2011 16:06

roadhead: Dec 25, 2001

FISHMANPET posted:

I don't think it actually means halfway. I remember once upon a time when I ran some calculations with different interest rates that if they were really low that point could happen within a few years of a 30 year mortgage.

Yea but you'll never get any phrase better than "Hump Check"

EDIT : and on my 30 year at 6% it'll take like 19 years. heh

roadhead fucked around with this message at 17:37 on May 5, 2011

# ¿ May 5, 2011 17:35

roadhead: Dec 25, 2001

Bastard Tetris posted:

What do you guys keep your "crap my house broke" emergency funds in anyways? I've been using an MMA and want to kick myself in the dick every time I get 6 bucks in interest every month from my lovely bank that is just buying T-bills at 0% with it anyways.

I've actually sent 6 "extra" payments to my lender, so the due date on the one I'll pay next week is 11/1/11. I did this initially by just making regular full payments every two weeks after we closed on the house.

Didn't realize just how fast the loan would move around before settling down with the lender servicing it now, and the company who we sent our first payment to had sold the loan before it got there and didn't actually want our check... Happened again with the second payment as well

Anyway after building the initial buffer I generally send 1.5-2x the entire payment amount (principal+interest+escrow) as an additional principle payment every month. If we have a minor emergency (or pay cash for a 10 year old car) I just make a normal sized mortgage payment that month to replenish the buffer.

This is on a 30 year fixed.

EDIT: I have liquid and stocks/bonds as well but for month-to-month minor things this has worked for me. Also we have not had any repairs on the house that were more than $500 so far, knock on wood

# ¿ May 27, 2011 14:20

roadhead: Dec 25, 2001

DJCobol posted:

If I remember correctly, cat urine has some kind of chemical in it that people get acclimatized to over time, and eventually no longer even notice the smell. Still disgusting though.

By acclimated I assume you mean "left without a sense of smell" ?

# ¿ May 27, 2011 16:20

roadhead: Dec 25, 2001

The Wormy Guy posted:

Quick question for anyone familiar with VA loans.

My wife and I just started looking for a home ONLY because her parents dropped a bomb and offered to front money for a down payment. During our meeting with the loan officer we found out that I was eligible for the VA loan which I had no clue about. It's a 2% fee in order to put 0 down.

Based off our calculations, it seems like using the money from her parents as the down is better than taking the 0 down and lowering the financing amount... I think.

Just looking for possible solutions to where I have what appears to be the best of both worlds, the ability to put 0 down and having a significant down payment.

Step 1. Borrow less money
Step 2. Pay less interest
Step 3. There is no step 3.

If you have 20% to put down its better terms (generally) than pretty much any other loan you can do. As you put in more than 20% the terms only get more favorable for you. Put down as much as you can afford to tie up in a very restrictive "savings" account all your new junk-mail will be sure to tell about.

# ¿ Aug 2, 2011 13:26

roadhead: Dec 25, 2001

senor punk posted:

What sort of financial situation is the loving association in where instead of putting a lien on the deadbeats and waiting for them to pay up they're loving you harder?

Maybe the guy with the 4 units is on the board?

# ¿ Nov 26, 2011 04:09

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# ¿ Apr 30, 2024 11:54

roadhead: Dec 25, 2001

silvergoose posted:

I expect they mean mortgage insurance, as in, if there's anything fishy that turns up about the mortgage (previous owner didn't file proper paperwork, there's an undisclosed lein, etc) you are insured against damages. From what I've heard, it's actually one of the few things that is actually worth it, since who the hell knows what dirty banks have touched that mortgage.

Thats "Title Insurance" I believe.

# ¿ May 10, 2012 15:16

The Something Awful Forums > Discussion > Ask/Tell > Business, Finance, and Careers > House-buying thread - Why is everyone involved in this process so deeply stupid?